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TOPIC
Challenges for Managers
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Remaining Competitive: Four Major
Challenges to Managers
Globalizing the firms operations
Managing a diverse workforce Keeping up with technological change and
implementing technology in the workplace Managing ethical behavior
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Changing Business Perspectives
From International (which implies anindividuals or organizations
held nationality is strongly
in consciousness)
To Globalization (whichimplies the world is free
from national boundaries andthat it is really a borderless world)
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From Multinational Organizations (in which the organization was
recognized as doing business
with other countries)
Changing Business Perspectives
To Transnational Organizations (in which the global viewpoint
supersedes national issues)
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Changes in the Global Marketplace
Collapse of Eastern Europe Union of East and West Berlin Perestroika Expansion of business with China
Guanxi The Chinese practice of building
networks for social exchange Creation of the European Union Establishment of the North American Free Trade
Agreement
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Understanding Cultural Differences
Reprinted with permission of Academy of Management, PO Box 3020, Briar Cliff Manor, NY 10510-8020. Cultural
Constraints in Management Theories (Figure), G. Hofstede, Academy of Management Executive 7, (1993). Reproducedby permission of the publisher via Copyright Clearance Center, Inc.
Individualism
High power distance
High uncertainty avoidance
Masculinity
Long-term orientation
Collectivism
Low power distance
Low uncertainty avoidance
Femininity
Short-term orientation
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Hofstedes Dimensions of Culture Geert Hofstedes cultural typology is the most often
used. It is based upon a study of 100,000 IBM employees
who work in IBM divisions throughout the world. Hofstedes survey revealed four underlying
dimensions of culture: Power Distance Uncertainty Avoidance
Individualism/Collectivism Masculinity/Femininity Long-Term Orientation
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Power Distance (PD)
Power Distance is the extent to which hierarchicaldifferences are accepted in society and articulated interm of deference to higher and lower social and
decision levels in organization. Artifacts of high PD:
Centralization # Org. Levels- Height # Supervisors Wage Differentials Values, White & Blue Collar Work
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Power Distance (PD)
Exhibit 6-6: Power distance: country examples andorganizational implications
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Chapter 6: The CulturalEnvironment
Power Distance (PD)
Exhibit 6-7: Rank distinctions among the Japanese
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Chapter 6: The CulturalEnvironment
Uncertainty Avoidance (UA)
Uncertainty Avoidance is the extent to whichuncertainty and ambiguity are tolerated.
Artifacts of high UA: Standardization Structured activities Written rules
Specialists No risk tolerance Ritualistic behavior
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Chapter 6: The CulturalEnvironment
Uncertainty Avoidance (UA)
Exhibit 6-8: Uncertainty avoidance: country examplesand organizational implications
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Individualism/Collectivism (I/C)
I/C is the extent to which the self or the groupconstitutes the center point of identificationfor the individual.
Individual self interest is pursued individually,or as a part of a group.
Artifacts of I/C
Firm as family Utilitarian decision making Group performance
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Individualism/Collectivism (I/C)
Exhibit 6-9: Individualism/collectivism: countryexamples and organizational implications
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Masculinity-Femininity (M/F)
Refers to the extent to which traditionalmasculine values, like aggressiveness andassertiveness, are valued.
Artifacts of M/F Sex Roles Minimized More Women In Jobs
Interpersonal Skills Rewarded Intuitive Skills Rewarded Social Rewards Valued
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Masculinity-Femininity (M/F)
Exhibit 6-10: Masculinity/femininity: countryexamples and organizational implications
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Long-Term Orientation (LTO)
Originally called Confucian Dynamism because of anchoring in the Confucian valuesystem.
Represents such values as thrift, persistence,and traditional respect of social obligations.
Organizations likely to adopt longer planninghorizon, with individuals ready to delaygratification.
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Long-Term Orientation (LTO)
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Schwartzs Classification Three polar dimensions of culture:
Embeddedness versus Autonomy Embeddedness emphasis on social relationships and tradition Autonomy finding meaning in ones own uniqueness
Hierarchy versus Egalitarianism Hierarchy legitimacy of hierarchical role and resource allocation Egalitarianism transcendence of self-interests and promoting
others welfare Mastery versus Harmony
Mastery mastering the social environment via self-assertion Harmony being at peace with nature and society
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Schwartzs Classification
Exhibit 6-13: Sample country rankings on Schwartzsdimensions
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Trompenaars and Hampden- TurnersClassification
Consists of seven dimensions:1. Universalism versus particularism rules versus
relationships
2. Communitarianism versus individualism the groupversus the individual3. Neutral versus emotional4. Diffuse versus specific
5. Achievement versus ascription6. Attitudes to time7. Attitudes toward the environment
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Reprinted with permission of Academy of Management, PO Box 3020, Briar Cliff Manor, NY 10510-8020. CulturalConstraints in Management Theories
(Figure), G. Hofstede, Academy of Management Executive 7, (1993). Reproducedby permission of the publisher via Copyright Clearance Center, Inc.
Where the U.S. Stands
Individualism
High power distance
High uncertainty avoidance
Masculinity
Long-term orientation
Collectivism
Low power distance
Low uncertainty avoidance
Femininity
Short-term orientation
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Developing Cross-Cultural
Sensitivity Cultural sensitivity training Cross-cultural task forces/teams Global view of human resource functions
Planning Recruitment and Selection Compensation Training and Development
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Diversity
All forms of individual differences, including
culture, gender, age, ability, personality,religious affiliation, economic class, socialstatus, military attachment, and sexual
orientation
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Diversity Statistics for the
WorkplaceCultural 2020 Workforce: 68% white non-Hispanic
14% Hispanic11% African-American
5% Asian
Gender 2020 Workforce: 50% male50% female
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Women and Obstacles at Work
Today, women make up over 60% of the workforce,earn 32% of all doctorates, 52% of masters degrees,and 50% of undergraduate degrees
BUTToday, women hold less than 15.7% of Fortune 500 corporate officer positions, earn 78% of what theirmale counterparts do, and encounter the glass ceiling
in the workplace
a transparent barrier that keeps women from rising
above a certain level in organizations
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Diversity Statistics Affecting the
WorkplaceAge By 2030, there will be 70,000,000 older
persons. People over 65 will comprise 20% of the population.
Ability An estimated 50 million disabled live in theU.S.; their unemployment rate exceeds 50%.
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Diversitys Benefits & Problems
BENEFITS PROBLEMS Attracts & retains thebest human talent Improves marketing
efforts Promotes creativity andinnovation Results in better problem
solving Enhances organizationalflexibility
Resistance to change Lack of cohesiveness Communication
problems Interpersonal conflicts Slowed decisionmaking
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Ethical Theories Consequential Theory an ethical theory thatemphasizes the
consequences or resultsof behavior
Rule-Based Theory an ethical theory that
emphasizes thecharacter of the act
itself rather than its effects Character Theory
an ethical theory thatemphasizes the character,
personal virtues, and
integrity of the individual
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Employee Rights Issues
Computerized monitoring
Drug testingFree speech
Downsizing
LayoffsDue process
AIDS in the workplace
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Sexual Harassment = UnwantedSexual Attention
Gender Harassment crude comments;behaviors that convey hostility toward aparticular gender
Unwanted Sexual Attention unwantedtouching, unwanted pressure for dates
Sexual Coercion demands for sexual favorsthrough job-related threats or promises
Harassment orPotential Romance?
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Organizational Justice
Distributive Justice fairness of the outcomesthat individuals receivein an organization
Ex. Companiesin Danger CEOSalariesvs.
Ex. Competence
and Skill
Race and
Gendervs.
Procedural Justice fairness by which theoutcomes are allocatedin an organization
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Individual and Organizational
Responsibility
Whistle-Blower an employee who informs
authorities of the wrongdoing of his or hercompany or coworkers Public Hero Vile Wretch
Social Responsibility the obligation of anorganization to behave ethically
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Rotary Four-Way Testof What We Think, Say, or Do
1. Is it the TRUTH?
2. Is it FAIR to all concerned?
3. Will it build GOODWILL and better
friendships?
4. Will it be BENEFICIALto all concerned?
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Technological Innovation
Technology
The intellectual andmechanical processesused by anorganization totransform inputs into
products or servicesthat meetorganizational goals
ExamplesInternet integrates
computer, cable,telecommunications
technologiesExpert System computer-
based application using arepresentation of humanexpertise in a specialized
field of knowledge to solveproblemsRobotics use of robots in
organizations
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Alternative Work Arrangements
Employees Gain flexibility Save the commute to work Enjoy the comforts of home
But, they Have distractions Lack socialization opportunities Lack interaction with supervisors Identify less with the organization
Telecommuting transmitting work from ahome computer to the office using a modem
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Additional Alternative WorkArrangements
Hoteling employees have mobile filecabinets/lockers for personal storage;work spaces are reserved, not assigned
Satellite Offices large facilities brokeninto smaller workplaces near employeeshomes
Virtual Office people work anytime,anywhere, with anyone
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Technological Change RequiresManagers to
Develop technical competence to gainworkers respect
Focus on helping workers manage thestress of their work
Take advantage of the wealth of information available to motivate,coach, and counsel not to control
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Help Employees Adjust by
Involving them in decision makingregarding technological change
Selecting technology that increasesworkers skill requirements
Providing effective training Establishing support groups Encouraging reinvention (creative
application of new technology)
F Ch ll
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Four Challenges toOrganizations in the New
MillenniumGlobalization
Diversity
Ethics